Unaudited Quarterly Consolidated Financial Statements as of and for the three months ended June 30, 2018

Transcription

1 SUMITOMO MITSUI FINANCIAL GROUP Unaudited Quarterly Consolidated Financial Statements as of and for the three months ended June 30, 2018 This document contains forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995), regarding the intent, belief or current expectations of Sumitomo Mitsui Financial Group, Inc. ( the Company ) and its management with respect to the Company s future financial condition and results of operations. In many cases but not all, these statements contain words such as anticipate, believe, estimate, expect, intend, may, plan, probability, risk, project, should, seek, target, will and similar expressions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those expressed in or implied by such forward-looking statements contained or deemed to be contained herein. The risks and uncertainties which may affect future performance include: deterioration of Japanese and global economic conditions and financial markets; declines in the value of the Company s securities portfolio; incurrence of significant credit-related costs; the Company s ability to successfully implement its business strategy through its subsidiaries, affiliates and alliance partners; and exposure to new risks as the Company expands the scope of its business. Given these and other risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the date of this document. The Company undertakes no obligation to update or revise any forward-looking statements. Please refer to the Company s most recent disclosure documents such as its annual report on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as its earnings press releases, for a more detailed description of the risks and uncertainties that may affect its financial conditions, its operating results, and investors decisions.

2 UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS (JAPANESE GAAP) QUARTERLY CONSOLIDATED BALANCE SHEETS Millions of U.S. dollars March 31, 2018 June 30, 2018 June 30, 2018 Assets: Cash and due from banks 53,732,582 54,052,677 $ 489,386 Call loans and bills bought 1,881,879 2,166,048 19,611 Receivables under resale agreements 827,892 2,800,962 25,360 Receivables under securities borrowing transactions 8,337,700 5,719,671 51,785 Monetary claims bought 4,730,770 4,772,209 43,207 Trading assets 5,585,591 5,935,395 53,738 Money held in trust 1,482 1, Securities *2 25,712,709 *2 24,030, ,570 Loans and bills discounted *1 72,945,934 *1 74,384, ,463 Foreign exchanges 2,166,190 2,566,421 23,236 Lease receivables and investment assets 2,329,431 2,301,550 20,838 Other assets 8,005,807 8,011,263 72,533 Tangible fixed assets 3,475,131 3,589,617 32,500 Intangible fixed assets 865, ,477 7,691 Net defined benefit asset 383, ,650 3,546 Deferred tax assets 27,609 21, Customers liabilities for acceptances and guarantees 8,575,499 9,020,737 81,673 Reserve for possible loan losses (536,088) (503,850) (4,562) Total assets 199,049, ,110,993 $ 1,811,779 1

3 QUARTERLY CONSOLIDATED BALANCE SHEETS Millions of U.S. dollars March 31, 2018 June 30, 2018 June 30, 2018 Liabilities and net assets: Liabilities: Deposits 116,477, ,336,855 $ 1,071,407 Negotiable certificates of deposit 11,220,284 10,918,752 98,857 Call money and bills sold 1,190,928 1,179,485 10,679 Payables under repurchase agreements 5,509,721 8,106,633 73,396 Payables under securities lending transactions 7,186,861 2,781,697 25,185 Commercial paper 2,384,787 2,721,596 24,641 Trading liabilities 4,402,110 4,062,267 36,779 Borrowed money 10,829,248 10,991,300 99,514 Foreign exchanges 865,640 1,260,021 11,408 Short-term bonds 1,256,600 1,208,600 10,943 Bonds 9,057,683 9,464,680 85,692 Due to trust account 1,328,271 1,232,467 11,159 Other liabilities 6,348,202 6,337,545 57,379 Reserve for employee bonuses 84,046 28, Reserve for executive bonuses 3,861 Net defined benefit liability 39,982 39, Reserve for executive retirement benefits 2,026 1, Reserve for point service program 22,244 23, Reserve for reimbursement of deposits 17,765 14, Reserve for losses on interest repayment 144, ,070 1,214 Reserves under the special laws 2,397 2, Deferred tax liabilities 455, ,139 4,474 Deferred tax liabilities for land revaluation 30,539 30, Acceptances and guarantees 8,575,499 9,020,737 81,673 Total liabilities 187,436, ,391,998 1,705,677 Net assets: Capital stock 2,338,743 2,338,743 21,175 Capital surplus 758, ,224 6,865 Retained earnings 5,552,573 5,652,748 51,179 Treasury stock (12,493) (82,213) (744) Total stockholders equity 8,637,039 8,667,502 78,474 Net unrealized on other securities 1,688,842 1,783,662 16,149 Net deferred on hedges (68,543) (81,054) (734) Land revaluation excess 37,097 36, Foreign currency translation adjustments 36,906 4, Accumulated remeasurements of defined benefit plans 59,121 57, Total accumulated other comprehensive income 1,753,424 1,801,206 16,308 Stock acquisition rights 2,823 2, Non-controlling interests 1,219,604 1,247,719 11,297 Total net assets 11,612,892 11,718, ,102 Total liabilities and net assets 199,049, ,110,993 $ 1,811,779 2

4 QUARTERLY CONSOLIDATED STATEMENTS OF INCOME Millions of U.S. dollars Three months ended June Ordinary income 1,361,027 1,426,372 $ 12,914 Interest income 536, ,790 5,240 Interest on loans and discounts 363, ,609 3,482 Interest and dividends on securities 94,994 85, Trust fees 883 1, Fees and commissions 284, ,911 2,743 Trading income 63,117 47, Other operating income 415, ,980 3,857 Other income *1 61,142 *1 70, Ordinary expenses 1,044,841 1,094,479 9,909 Interest expenses 173, ,182 2,220 Interest on deposits 63,587 98, Fees and commissions payments 46,864 48, Trading losses 68 1, Other operating expenses 341, ,631 3,093 General and administrative expenses 453, ,772 3,882 Other expenses *2 28,491 *2 28, Ordinary profit 316, ,893 3,005 Extraordinary gains *3 422 * Extraordinary losses *4 960 *4 1, Income before income taxes 315, ,624 2,993 Income taxes 49,868 82, Profit 265, ,687 2,243 Profit attributable to non-controlling interests 24,257 20, Profit attributable to owners of parent 241, ,084 $ 2,056 3

5 QUARTERLY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Millions of U.S. dollars Three months ended June Profit 265, ,687 $ 2,243 Other comprehensive income 28,165 67, Net unrealized on other securities 58, , Net deferred on hedges (4,644) (8,639) (78) Foreign currency translation adjustments (24,303) (1,322) (12) Remeasurements of defined benefit plans 4,061 (2,804) (25) Share of other comprehensive income of affiliates (5,665) (26,813) (243) Total comprehensive income 293, ,295 2,855 Comprehensive income attributable to owners of parent 263, ,153 2,491 Comprehensive income attributable to non-controlling interests 30,402 40,

6 NOTES TO UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS (Basis of presentation) Sumitomo Mitsui Financial Group, Inc. ( the Company ) was established on December 2, 2002 as a holding company for the SMBC group through a statutory share transfer (kabushiki iten) of all of the outstanding equity securities of Sumitomo Mitsui Banking Corporation ( SMBC ) in exchange for the Company s newly issued securities. The Company is a joint stock corporation with limited liability (Kabushiki Kaisha) incorporated under the Companies Act of Japan. Upon formation of the Company and completion of the statutory share transfer, SMBC became a direct wholly owned subsidiary of the Company. The Company has prepared the accompanying consolidated financial statements in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan ( Japanese GAAP ), which are different in certain respects as to application and disclosure requirements from International Financial Reporting Standards ( IFRS ). The accounts of overseas subsidiaries and affiliated companies are, in principle, integrated with those of the Company s accounting policies for purposes of consolidation unless they apply different accounting principles and standards as required under U.S. GAAP or IFRS, in which case a certain limited number of items are adjusted based on their materiality. These consolidated financial statements are translated from the consolidated financial statements contained in the quarterly securities report filed under the Financial Instruments and Exchange Act of Japan ( FIEA based financial statements ) except for the addition of U.S. dollar figures. Amounts less than 1 million yen have been rounded down. As a result, the totals in Japanese yen shown in the financial statements do not necessarily agree with the sum of the individual amounts. The translation of the Japanese yen amounts into U.S. dollars is included solely for the convenience of readers outside Japan, using the prevailing exchange rate at June 30, 2018 which was to US$1. These translations should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at that rate. (Changes in the scope of consolidation or in the scope of equity method) (1) Significant changes in the scope of consolidation Not applicable. (2) Significant changes in the scope of equity method Kansai Mirai Financial Group, Inc. became an equity method affiliate from the three months ended June 30, 2018 due to share exchanges between Kansai Mirai Financial Group, Inc. and both THE MINATO BANK, LTD. and Kansai Urban Banking Corporation which are equity method affiliates of the Company. (Applied special accounting methods used for preparing quarterly consolidated financial statements) Accounting treatment of tax expenses The Company and certain domestic consolidated subsidiaries calculated tax expenses by multiplying Income before income taxes by an effective tax rate that was reasonably estimated by applying tax effect accounting to estimated Income before income taxes for the fiscal year ending March 31, 2019 including the period for the three months ended June 30, Amounts of Income taxes include Income taxes-deferred. 5

7 (Notes to quarterly consolidated balance sheets) *1 Risk-monitored loans Risk-monitored loans at March 31, 2018 and June 30, 2018 were as follows: March 31, 2018 June 30, 2018 Bankrupt loans 27,709 23,928 Non-accrual loans 406, ,403 Past due loans (3 months or more) 12,822 12,497 Restructured loans 210, ,487 Risk-monitored loans 657, ,318 The amounts of loans presented above are the amounts before deduction of reserve for possible loan losses. *2 Guaranteed amount to privately-placed bonds The amounts guaranteed by SMBC and its banking subsidiaries to privately-placed bonds (stipulated by Article 2-3 of the Financial Instruments and Exchange Act) in Securities at March 31, 2018 and June 30, 2018 were as follows: March 31, 2018 June 30, 2018 Guaranteed amount to privately-placed bonds 1,796,308 1,751,934 6

8 (Notes to quarterly consolidated statements of income) *1 Other income Other income for the three months ended June 30, 2017 and 2018 included the following: Three months ended June 30, 2017 Three months ended June 30, 2018 Gains on sales of stocks 30,855 Gains on sales of stocks 33,015 *2 Other expenses Other expenses for the three months ended June 30, 2017 and 2018 included the following: Three months ended June 30, 2017 Three months ended June 30, 2018 Write-off of loans 18,409 Write-off of loans 18,147 *3 Extraordinary gains Extraordinary gains for the three months ended June 30, 2017 and 2018 included the following: Three months ended June 30, 2017 Three months ended June 30, 2018 Gains on disposal of fixed assets 408 Gains on disposal of fixed assets 136 *4 Extraordinary losses Extraordinary losses for the three months ended June 30, 2017 and 2018 included the following: Three months ended June 30, 2017 Three months ended June 30, 2018 Losses on disposal of fixed assets 357 Losses on disposal of fixed assets 613 Losses on impairment of fixed assets 453 Losses on impairment of fixed assets 610 7

9 (Notes to quarterly consolidated statements of cash flows) Quarterly consolidated statements of cash flows are not prepared for the three months ended June 30, Depreciation (including amortization of intangible fixed assets other than goodwill) and Amortization of goodwill for the three months ended June 30, 2017 and 2018 are as follows: Three months ended June Depreciation 69,261 70,701 Amortization of goodwill 6,309 5,725 (Notes to stockholders equity) Dividends paid in the three months ended June 30, 2017, except per share amount Cash dividends Date of resolution Type of shares Cash dividends per share Record date Effective date Ordinary general meeting of shareholders held on June 29, 2017 Common stock 105, March 31, 2017 June 30, 2017 Source of dividends Retained earnings Dividends paid in the three months ended June 30, 2018, except per share amount Cash dividends Date of resolution Type of shares Cash dividends per share Record date Effective date Ordinary general meeting of shareholders held on June 28, 2018 Common stock 126, March 31, 2018 June 29, 2018 Source of dividends Retained earnings 8

10 (Notes to segment and other related information) [Segment information] 1. Information on profit and loss amount by reportable segment Wholesale Business Unit Retail Business Unit International Business Unit Global Markets Business Unit Head office account and others Three months ended June 30, 2017 Total Consolidated gross profit 166, , , ,617 (12,810) 737,448 Expenses (85,524) (255,833) (71,182) (13,149) (28,225) (453,913) Others 9,605 1,461 19,859 4,337 (15,639) 19,623 Consolidated net business profit 90,775 59,405 95, ,805 (56,675) 303,158 Notes: 1. Figures shown in the parenthesis represent the loss. 2. Others includes equity in profit and loss of affiliates and cooperated profit and loss based on internal managerial accounting. 3. Head office account and others includes profit or loss to be eliminated as inter-segment transactions. Wholesale Business Unit Retail Business Unit International Business Unit Global Markets Business Unit Head office account and others Three months ended June 30, 2018 Total Consolidated gross profit 182, , , ,497 (48,117) 719,133 Expenses (86,009) (258,271) (78,680) (13,125) 7,314 (428,772) Others 9,408 1,398 9,692 4,543 (1,014) 24,028 Consolidated net business profit 105,779 58,789 94,724 96,915 (41,817) 314,389 Notes: 1. Figures shown in the parenthesis represent the loss. 2. Others includes equity in profit and loss of affiliates and cooperated profit and loss based on internal managerial accounting. 3. Head office account and others includes profit or loss to be eliminated as inter-segment transactions. 2. Difference between total amount of consolidated net business profit by reportable segment and ordinary profit on quarterly consolidated statements of income (adjustment of difference) Three months ended June 30, 2017 Consolidated net business profit 303,158 Other ordinary income (excluding equity in gains of affiliates) 41,518 Other ordinary expenses (28,491) Ordinary profit on quarterly consolidated statements of income 316,185 Figures shown in the parenthesis represent the loss. Three months ended June 30, 2018 Consolidated net business profit 314,389 Other ordinary income (excluding equity in gains of affiliates) 46,282 Other ordinary expenses (28,778) Ordinary profit on quarterly consolidated statements of income 331,893 Figures shown in the parenthesis represent the loss. 9

11 (Notes to financial instruments) There are no significant matters to be disclosed regarding financial instruments. (Notes to securities) The amounts shown in the following tables include negotiable certificates of deposit classified as Cash and due from banks and beneficiary claims on loan trust classified as Monetary claims bought, in addition to Securities stated in the consolidated balance sheets. 1. Bonds classified as held-to-maturity March 31, 2018 Consolidated balance sheet amount Fair value Net unrealized Japanese government bonds 372, ,596 2,132 Japanese local government bonds Japanese corporate bonds Other Total 372, ,596 2,132 The fair values are based on their market prices and others at the end of the fiscal year. June 30, 2018 Consolidated balance sheet amount Fair value Net unrealized Japanese government bonds 370, ,048 1,646 Japanese local government bonds Japanese corporate bonds Other Total 370, ,048 1,646 The fair values are based on their market prices and others at the end of the period. 10

12 2. Other securities March 31, 2018 Acquisition cost Consolidated balance sheet amount Net unrealized Stocks 1,574,098 3,747,764 2,173,665 Bonds 11,789,804 11,834,181 44,377 Japanese government bonds 9,190,553 9,203,036 12,482 Japanese local government bonds 47,080 47,032 (48) Japanese corporate bonds 2,552,170 2,584,113 31,942 Other 9,242,232 9,432, ,118 Total 22,606,135 25,014,297 2,408,161 Notes: 1. Consolidated balance sheet amounts of stocks (including foreign stocks) are carried at their average market prices during the final month of the fiscal year, and bonds and others are carried at their fiscal year-end market prices. 2. Net unrealized gains on other securities shown above include gains of 15 million for the fiscal year ended March 31, 2018 that are recognized in the earnings by applying fair value hedge accounting. 3. Consolidated balance sheet amounts of other securities whose fair values are extremely difficult to determine are as follows: March 31, 2018 Stocks 141,578 Other 284,303 Total 425,881 These amounts are not included in 2. Other securities since there are no market prices and it is extremely difficult to determine their fair values. 4. In light of the Practical Solution on Measurement of Fair Value for Financial Assets (ASBJ Practical Issue Task Force No. 25), the fair values of floating rate government bonds are based on the present value of future cash flows (the government bond yield is used to discount and estimate future cash flows). Bond yield and yield volatility are the main price parameters. June 30, 2018 Acquisition cost Consolidated balance sheet amount Net unrealized Stocks 1,553,465 3,861,471 2,308,006 Bonds 9,718,285 9,760,681 42,395 Japanese government bonds 7,139,267 7,150,299 11,032 Japanese local government bonds 35,429 35, Japanese corporate bonds 2,543,588 2,574,937 31,348 Other 9,427,399 9,636, ,963 Total 20,699,150 23,258,515 2,559,365 Notes: 1. Consolidated balance sheet amounts of stocks (including foreign stocks) are carried at their average market prices during the final month of the period, and bonds and others are carried at their period-end market prices. 2. Net unrealized losses on other securities shown above include losses of 990 million for the three months ended June 30, 2018 that are recognized in the earnings by applying fair value hedge accounting. 3. Consolidated balance sheet amounts of other securities whose fair values are extremely difficult to determine are as follows: June 30, 2018 Stocks 141,712 Other 329,895 Total 471,607 These amounts are not included in 2. Other securities since there are no market prices and it is extremely difficult to determine their fair values. 4. In light of the Practical Solution on Measurement of Fair Value for Financial Assets (ASBJ Practical Issue Task Force No. 25), the fair values of floating rate government bonds are based on the present value of future cash flows (the government bond yield is used to discount and estimate future cash flows). Bond yield and yield volatility are the main price parameters. 11

13 3. Write-down of securities Bonds classified as held-to-maturity and other securities (excluding securities whose fair values are extremely difficult to determine) are considered as impaired if the fair value decreases materially below the acquisition cost and such decline is not considered as recoverable. The fair value is recognized as the consolidated balance sheet amount and the amount of write-down is accounted for as valuation loss. losses for the fiscal year ended March 31, 2018 and for the three months ended June 30, 2018 were 3,331 million and 532 million, respectively. The rule for determining material decline is as follows and is based on the classification of issuers under the rules of self-assessment of assets. Bankrupt/Effectively bankrupt/potentially bankrupt issuers: Fair value is lower than acquisition cost. Issuers requiring caution: Fair value is 30% or lower than acquisition cost. Normal issuers: Fair value is 50% or lower than acquisition cost. Bankrupt issuers: Issuers that are legally bankrupt or formally declared bankrupt. Effectively bankrupt issuers: Issuers that are not legally bankrupt but regarded as substantially bankrupt. Potentially bankrupt issuers: Issuers that are not bankrupt now, but are perceived to have a high risk of falling into bankruptcy. Issuers requiring caution: Issuers that are identified for close monitoring. Normal issuers: Issuers other than the above 4 categories of issuers. (Notes to money held in trust) 1. Money held in trust classified as held-to-maturity Fiscal year ended March 31, 2018 There are no corresponding transactions. Three months ended June 30, 2018 There are no corresponding transactions. 2. Other money held in trust (Other than trading and held to maturity) Consolidated March 31, 2018 Acquisition cost balance sheet amount Net unrealized Other money held in trust 1,482 1,482 Consolidated balance sheet amount is measured at fair value based on its market price and others at the end of the fiscal year. Consolidated June 30, 2018 Acquisition cost balance sheet amount Net unrealized Other money held in trust 1,083 1,083 Quarterly consolidated balance sheet amount is measured at fair value based on its market price and others at the end of the period. 12

14 (Notes to derivative transactions) (1) Interest rate derivatives March 31, 2018 Contract amount Fair Value Interest rate futures 74,516,976 1,413 1,413 Interest rate options 66,502,028 4,220 4,220 Forward rate agreements 25,024,591 (62) (62) Interest rate swaps 429,909,020 93,567 93,567 Interest rate swaptions 10,702, Caps 48,509,999 (26,583) (26,583) Floors 1,789, Other 16,906,598 13,329 13,329 Total / 86,268 86,268 The above transactions are valued at fair value and the valuation are accounted for in the consolidated statements of income. June 30, 2018 Contract amount Fair Value Interest rate futures 80,532,799 1,305 1,305 Interest rate options 80,450,752 18,515 18,515 Forward rate agreements 37,560,113 (464) (464) Interest rate swaps 421,819, , ,389 Interest rate swaptions 11,966,039 3,550 3,550 Caps 48,138,237 (52,647) (52,647) Floors 1,696,449 (244) (244) Other 8,279,309 18,187 18,187 Total / 203, ,592 The above transactions are valued at fair value and the valuation are accounted for in the quarterly consolidated statements of income. 13

15 (2) Currency derivatives March 31, 2018 Contract amount Fair value Currency futures 689 (18) (18) Currency swaps 39,984,899 90, ,215 Currency swaptions 1,305,318 2,207 2,207 Forward foreign exchange 76,246,360 21,951 21,951 Currency options 5,030,996 3,644 3,644 Total / 118, ,000 The above transactions are valued at fair value and the valuation are accounted for in the consolidated statements of income. In addition, transactions related to financial assets and liabilities denominated in foreign currencies and recognized in the consolidated balance sheets, or transactions related to financial assets and liabilities denominated in foreign currencies which have been eliminated in the consolidation are not included in the above table. June 30, 2018 Contract amount Fair value Currency futures 3,416 (5) (5) Currency swaps 40,464,712 96, ,530 Currency swaptions 1,257,379 1,045 1,045 Forward foreign exchange 80,747,500 64,253 64,253 Currency options 5,849,878 1,894 1,894 Total / 163, ,718 The above transactions are valued at fair value and the valuation are accounted for in the quarterly consolidated statements of income. In addition, transactions related to financial assets and liabilities denominated in foreign currencies and recognized in the quarterly consolidated balance sheets, or transactions related to financial assets and liabilities denominated in foreign currencies which have been eliminated in the consolidation are not included in the above table. 14

16 (3) Equity derivatives March 31, 2018 Contract amount Fair value Equity price index futures 827,063 (3,757) (3,757) Equity price index options 1,779,545 (26,132) (26,132) Equity options 657,218 3,451 3,451 Equity index forward contracts 7, Equity index swaps 241,252 6,957 6,957 Total / (18,943) (18,943) The above transactions are valued at fair value and the valuation are accounted for in the consolidated statements of income. June 30, 2018 Contract amount Fair value Equity price index futures 960,889 7,843 7,843 Equity price index options 1,723,175 (21,812) (21,812) Equity options 705,087 (678) (678) Equity index forward contracts 9, Equity index swaps 241,067 5,666 5,666 Total / (8,474) (8,474) The above transactions are valued at fair value and the valuation are accounted for in the quarterly consolidated statements of income. 15

17 (4) Bond derivatives March 31, 2018 Contract amount Fair value Bond futures 3,776,342 (1,588) (1,588) Bond futures options 487,278 (404) (404) Bond forward contracts 6, Bond options 287, Total / (1,529) (1,529) The above transactions are valued at fair value and the valuation are accounted for in the consolidated statements of income. June 30, 2018 Contract amount Fair value Bond futures 4,386,396 (1,168) (1,168) Bond futures options 479,147 (43) (43) Bond options 541, Total / (764) (764) The above transactions are valued at fair value and the valuation are accounted for in the quarterly consolidated statements of income. 16

18 (5) Commodity derivatives March 31, 2018 Contract amount Fair value Commodity futures 20,902 (62) (62) Commodity swaps 128,466 2,211 2,211 Commodity options 12,169 (542) (542) Total / 1,606 1,606 Notes: 1. The above transactions are valued at fair value and the valuation are accounted for in the consolidated statements of income. 2. Underlying assets of commodity derivatives are fuels and metals. June 30, 2018 Contract amount Fair value Commodity futures 123,956 (30) (30) Commodity swaps 125,230 1,680 1,680 Commodity options 12,575 (431) (431) Total / 1,218 1,218 Notes: 1. The above transactions are valued at fair value and the valuation are accounted for in the quarterly consolidated statements of income. 2. Underlying assets of commodity derivatives are fuels and metals. (6) Credit derivative transactions March 31, 2018 Contract amount Fair value Credit default options 1,241, Total / The above transactions are valued at fair value and the valuation are accounted for in the consolidated statements of income. June 30, 2018 Contract amount Fair value Credit default options 1,290, Total / The above transactions are valued at fair value and the valuation are accounted for in the quarterly consolidated statements of income. 17

19 (Business combination) There is no significant business combination to be disclosed. (Per share data) Earnings per share, earnings per share (diluted) and each calculation method are as follows:, except per share data and number of shares Three months ended June (i) Earnings per share [The calculation method] Profit attributable to owners of parent 241, ,084 Amount not attributable to common stockholders Profit attributable to owners of parent concerning common stock 241, ,084 Average number of common stock during the period (in thousands) 1,410,112 1,403,702 (ii) Earnings per share (diluted) [The calculation method] Adjustment for profit attributable to owners of parent (0) (3) Adjustment of dilutive shares issued by consolidated subsidiaries and equity method affiliates (0) (3) Increase in the number of common stock (in thousands) 1, Stock acquisition rights (in thousands) 1, (Significant Subsequent Events) There are no significant subsequent events to be disclosed. (Others) Not applicable. 18